Sunday, November 11, 2007
Iraq - Iran pipeline may be built
Oil
(UPI) -- Iraq and Iran may be moving ahead on a cross-river oil pipeline, a move the Iraq ministry has talked about but was further down the road. Media reports are carrying the word of a source in Iraq’s South Oil Co. that the pipeline construction has started. The South Oil Co. is a state-owned entity producing and transporting oil from Basra and surrounding areas, where 80 percent of Iraq’s oil reserves are located.
The Kuwait News Agency reports the construction of the pipeline between ports in Basra and the Abaadan port in Iran, crossing the Shatt al-Arab river. The pipeline capacity would be 200,000 barrels per day, and provide another route for Iraq exports and allowing an increase in production, the Al Mashriq newspaper reports.
Iraq produces just over 2 million barrels per day right now, but with 115 billion barrels of proven reserves, it could handle much more. Iraq and Iran had apparently signed a deal on the pipeline, though details are not known. Iraqi Oil Minister Hussain al-Shahristani has confirmed it as one of many options to increase production and exports of the oil.
Labels: Abaadan port, Basra, Hussain al-Shahristani, Iran, Iraq, oil pipeline, South Oil Company
Friday, September 14, 2007
KRG spokesman calls for oil minister's resignation
Oil
(Voices of Iraq) - A senior Kurdish official on Thursday criticized statements recently made by the Iraqi oil minister on the relation between the federal government and Kurdistan region government, saying "it will impede the on-going negotiations on approving the oil draft law." "The recent statements by Shehristani will neither help the political process nor the on-going negotiations on the oil and gas and wealth sharing draft laws," Falah Mustafa, Foreign Relations Official in Kurdistan region government, told the independent news agency Voices of Iraq (VOI) over the phone.
Mustafa made comments to VOI on a statement made early this week by the Iraqi Oil Minister Hussein al-Shehristani in which he said that his ministry would not recognize the oil contracts concluded by the Kurdistan government with foreign companies. On Sunday, Shehristani told the government-funded al-Sabaah daily that the oil ministry had no commitment towards the oil investment contracts signed by officials from Kurdistan region government.
Mustafa accused Shehrstani of being "negative all the way," saying that he should recognize that the moves taken by Kurdistan government on oil investment contracts "come in full conformity with the powers given to it by the Iraqi constitution." Shehristani made his statement in reference to the oil contracts concluded by Kurdistan government with Hunt Oil Group for oil investment in Duhuk Kurdistan province last week.
The Iraqi Oil Minister's statement sparked a wave of criticism in Iraq's Kurdistan region leading the official spokesman for Kurdistan government to call for al-"Shehrstani's resignation." Over the last seven months, marathonic negotiations have been underway among Iraqi political blocs on a draft law on oil. Among the main differences was the relation between the federal government and the local governments in the region(s) as to the conclusion of oil investment contracts.
Mustafa made comments to VOI on a statement made early this week by the Iraqi Oil Minister Hussein al-Shehristani in which he said that his ministry would not recognize the oil contracts concluded by the Kurdistan government with foreign companies. On Sunday, Shehristani told the government-funded al-Sabaah daily that the oil ministry had no commitment towards the oil investment contracts signed by officials from Kurdistan region government.
Mustafa accused Shehrstani of being "negative all the way," saying that he should recognize that the moves taken by Kurdistan government on oil investment contracts "come in full conformity with the powers given to it by the Iraqi constitution." Shehristani made his statement in reference to the oil contracts concluded by Kurdistan government with Hunt Oil Group for oil investment in Duhuk Kurdistan province last week.
The Iraqi Oil Minister's statement sparked a wave of criticism in Iraq's Kurdistan region leading the official spokesman for Kurdistan government to call for al-"Shehrstani's resignation." Over the last seven months, marathonic negotiations have been underway among Iraqi political blocs on a draft law on oil. Among the main differences was the relation between the federal government and the local governments in the region(s) as to the conclusion of oil investment contracts.
Labels: draft oil law, Falah Mustafa, Hunt Oil Co., Hussain al-Shahristani, oil contracts
Thursday, September 13, 2007
Iraq may offer S. Korea favourable terms for oilfield development
Oil
(Earth Times) - Iraq may offer South Korea enhanced terms for developing an oil field because of Korea's work in reconstruction. The Korea Information Service reports the possible favorable terms for the Halfaya field near Amara, Iraq, were discussed during a meeting in Dubai between Oil Minister Hussain al-Shahristani and Kim Young-joo, South Korea's minister of commerce, industry and energy.S hahristani was in Dubai attending an Iraq oil conference.
Halfaya has an estimated 3.8 billion barrels of oil reserves, and Iraq wants it to produce 200,000 barrels per day. Shahristani said South Korea may draw down the bidding qualifications for the field because of the support South Korea has given to Iraq oil and reconstruction development efforts. The Korea National Oil Corp. had signed a contract in 1997 for the field. There were a handful of contracts signed by Saddam Hussein. Shahristani has said that those the government recognizes as still valid will be renegotiated under terms set by a proposed federal oil law.
Labels: Halfaya field, Hussain al-Shahristani, Kim Young-joo, Korea National Oil Corp., South Korea
Wednesday, September 12, 2007
KRG defends oil contract with Hunt Oil Co.
Oil, Kurdistan
(Reuters) - The government of Iraq's Kurdish region on Tuesday defended an oil and gas production contract it has concluded with a U.S. company, rejecting remarks by the country's oil minister who questioned its legality. The semi-autonomous Kurdistan Regional Government (KRG) said on Saturday it had signed the production sharing contract with a unit of U.S.-based Hunt Oil Co. and with Impulse Energy Corp.
Media reports have quoted Iraqi Oil Minister Hussain al-Shahristani as saying that the deal "has no standing" because it was not approved by the central government in Baghdad. "Shahristani's recent remarks about the legality of the KRG's contracts are totally unacceptable..." said Khaled Salih, spokesman of the Kurdistan regional government, in a statement made available to Reuters. "His (Shahristani) views are totally irrelevant to what we are doing legally and constitutionally in Kurdistan.
"The deal is the first such contract since the region passed its own oil law in August, while Iraq's parliament failed to pass a national law after months of negotiations. The national law is crucial to regulating how wealth from Iraq's oil reserves, the world's third largest, will be shared out among its sectarian and ethnic groups. The reserves are mainly in the north and the south of the country. "What right does Shahristani have to question the legitimacy of contracts awarded by KRG acting under the powers of the newly enacted law passed by the unanimous decision of the Regional Parliament and according to the new Iraq constitution?" the statement said.
The deal covers exploration activity in the Dihok area. Hunt Oil Co. of the Kurdistan Region will begin geological survey and seismic work by the end of 2007 and has plans to drill an exploration well in 2008. The regional government has signed five production sharing agreements earlier with foreign companies.
Labels: Duhuk, Hunt Oil Co., Hussain al-Shahristani, Impulse Energy Corp., Khaled Salih, KRG, oil contract
Tuesday, September 11, 2007
Iraqi oil minister says new U.S. - KRG oil deal is illegal
Oil, Kurdistan
(AP) -- An agreement announced this weekend between U.S.-based Hunt Oil Co. and the self-ruled Kurdish administration of northern Iraq to explore for oil is illegal, Iraq's oil minister Hussain al-Shahristani said Monday. Those comments underscore the central government's view that exploration contracts with foreign companies should be signed only after the adoption of a new national oil law, which has been stalled for months.
"Any oil deal has no standing as far as the government of Iraq is concerned," al-Shahristani said as he arrived for an OPEC meeting in Vienna. "All these contracts have to be approved by the Federal Authority before they are legal. This (contract) was not presented for approval. It has no standing."
Hunt Oil, a privately held independent oil company, and the Kurdish regional government said Saturday they had signed a production-sharing contract for petroleum exploration in the Kurdistan region of northern Iraq. Terms were not disclosed. Dallas, Texas-based Hunt declined to comment Monday. The deal is one of several the Kurds have signed with foreign oil companies in the past few years and the first since they put their own oil law into effect in August.
These deals have angered Baghdad, but the Kurdish region appears determined to advance oil exploration in the three-province area they govern in northern Iraq, as Iraq's long-delayed federal oil law remains hobbled by disagreements -- among others, about the control of revenues. Despite Iraq's vast oil reserves, major international companies have sat on the sidelines, not only for security reasons but because of the absence of legislation governing the industry and offering protection for investments.
"Any oil deal has no standing as far as the government of Iraq is concerned," al-Shahristani said as he arrived for an OPEC meeting in Vienna. "All these contracts have to be approved by the Federal Authority before they are legal. This (contract) was not presented for approval. It has no standing."
Hunt Oil, a privately held independent oil company, and the Kurdish regional government said Saturday they had signed a production-sharing contract for petroleum exploration in the Kurdistan region of northern Iraq. Terms were not disclosed. Dallas, Texas-based Hunt declined to comment Monday. The deal is one of several the Kurds have signed with foreign oil companies in the past few years and the first since they put their own oil law into effect in August.
These deals have angered Baghdad, but the Kurdish region appears determined to advance oil exploration in the three-province area they govern in northern Iraq, as Iraq's long-delayed federal oil law remains hobbled by disagreements -- among others, about the control of revenues. Despite Iraq's vast oil reserves, major international companies have sat on the sidelines, not only for security reasons but because of the absence of legislation governing the industry and offering protection for investments.
Labels: Hunt Oil Co., Hussain al-Shahristani, KRG, Kurdistan, oil, oil exploration, PSC
Wednesday, September 05, 2007
Iraq resumes pumping of oil from Kirkuk to Ceyhan
Region
(AP) -- Iraq's oil minister said Tuesday that crude oil began to flow from his country's northern oil-rich Kirkuk to a Turkish export terminal last week - for the first time since Saddam Hussein was toppled in 2003. "We're pumping between 300,000 to 400,000 barrels a day of Kirkuk crude to the Turkish export terminal of Ceyhan," Hussain al-Shahristani told Dow Jones Newswires in a telephone interview from Baghdad.
The pipeline - Iraq's main export route from Kirkuk to the Turkish Mediterranean port of Ceyhan - has been mostly closed because of constant sabotage since the U.S.-led war. Two weeks ago, Iraq agreed with Syria to repair and subsequently reopen another key pipeline, a 550-mile-long link connecting Kirkuk and the Syrian port of Baniyas. Once the Baniyas line - built in the 1950s but bombed by U.S. forces during the invasion that ousted Saddam - is reopened, Iraq would be using two terminals on the Mediterranean Sea. Currently, Iraq exports nearly all its oil through the Persian Gulf.
Al-Shahristani told Dow Jones that Iraq's current production capacity from its northern oil fields stands at 700,000 barrels a day, of which about 300,000 barrels a day are destined for a refinery in the nearby northern industrial city of Beiji for domestic use. The remainder is for export.
Last week, Iraq's State Oil Marketing Organization announced a tender to sell 5 million barrels of Kirkuk crude through Turkey's Ceyhan port - the third tender of its kind this year. "As far as I know, we have over 5 million (barrels) of crude stocks in Ceyhan," al-Shahristani said.
He said he expected Iraq to maintain the same level of exports from its northern fields, citing new measures to prevent sabotage of pipelines. He said the measures include dispatching a security force, made up of tribesmen from the area and affiliated with his ministry, to guard the pipelines.
The pipeline - Iraq's main export route from Kirkuk to the Turkish Mediterranean port of Ceyhan - has been mostly closed because of constant sabotage since the U.S.-led war. Two weeks ago, Iraq agreed with Syria to repair and subsequently reopen another key pipeline, a 550-mile-long link connecting Kirkuk and the Syrian port of Baniyas. Once the Baniyas line - built in the 1950s but bombed by U.S. forces during the invasion that ousted Saddam - is reopened, Iraq would be using two terminals on the Mediterranean Sea. Currently, Iraq exports nearly all its oil through the Persian Gulf.
Al-Shahristani told Dow Jones that Iraq's current production capacity from its northern oil fields stands at 700,000 barrels a day, of which about 300,000 barrels a day are destined for a refinery in the nearby northern industrial city of Beiji for domestic use. The remainder is for export.
Last week, Iraq's State Oil Marketing Organization announced a tender to sell 5 million barrels of Kirkuk crude through Turkey's Ceyhan port - the third tender of its kind this year. "As far as I know, we have over 5 million (barrels) of crude stocks in Ceyhan," al-Shahristani said.
He said he expected Iraq to maintain the same level of exports from its northern fields, citing new measures to prevent sabotage of pipelines. He said the measures include dispatching a security force, made up of tribesmen from the area and affiliated with his ministry, to guard the pipelines.
Labels: Baniyas line, Ceyhan, Hussain al-Shahristani, Iraq, Kirkuk, oil, SOMO, Turkey
Friday, August 17, 2007
Oil official abducted in sophisticated raid
(Al Bayyna Al Jadidah Newspaper) - 16 AUG - The Oil Ministry spokesman, Assim Jihad, said that on Tuesday tens of gunmen attacked the “Marketing Commission’s Complex.” They kidnapped the senior Deputy Minister, Abd Al Jabbar Al Wakka and other officials. Jihad added that the incident occurred after official hours, and he pointed out that the complex is near the Oil Ministry. The attackers used official vehicles and were wearing official uniforms. Jihad confirmed that the security organizations are investigating to discover the names of those who have been kidnapped and to learn who kidnapped them.
Jihad blamed armed gangs for the incident but he did not name them. He continued, “These gangs want to create a more unstable situation.” An unnamed MOI spokesman told the AP that five guards were wounded. According to the AP, there were 50 gunmen that attacked the Oil Ministry complex in 17 official vehicles that may have been stolen.
Regarding the same subject, on Tuesday, the Oil Minister, Hussain Al Shahristani said that the kidnapping which targeted the senior deputy, Abd Al Jabbar Al Wakka and others, was carried out by those who want to hinder the government and prevent the ministries from providing good services to the citizens. Al Shahristani announced that his ministry is assisting the security organizations to discover who carried out these kidnappings.
Oil Ministry spokesman Assim Jihad said, “There were about 100 kidnappers and this operation happened at around 3:30 PM Tuesday afternoon. The number of those kidnapped is still unknown. It may be four or five people.” He added that the ministry is trying to determine the exact number and that the kidnappers used a variety of vehicles. He said that the kidnappers took the vehicles and weapons of the Oil Protection forces at Somo Oil Complex.
Jihad blamed armed gangs for the incident but he did not name them. He continued, “These gangs want to create a more unstable situation.” An unnamed MOI spokesman told the AP that five guards were wounded. According to the AP, there were 50 gunmen that attacked the Oil Ministry complex in 17 official vehicles that may have been stolen.
Regarding the same subject, on Tuesday, the Oil Minister, Hussain Al Shahristani said that the kidnapping which targeted the senior deputy, Abd Al Jabbar Al Wakka and others, was carried out by those who want to hinder the government and prevent the ministries from providing good services to the citizens. Al Shahristani announced that his ministry is assisting the security organizations to discover who carried out these kidnappings.
Oil Ministry spokesman Assim Jihad said, “There were about 100 kidnappers and this operation happened at around 3:30 PM Tuesday afternoon. The number of those kidnapped is still unknown. It may be four or five people.” He added that the ministry is trying to determine the exact number and that the kidnappers used a variety of vehicles. He said that the kidnappers took the vehicles and weapons of the Oil Protection forces at Somo Oil Complex.
Hussein al Shahristani said the men were carrying "sophisticated" weapons. They drove government vehicles and spoke in English as they convinced guards to let them enter in what he described as a serious breach of security committed by "enemies of Iraq." He said security forces had some indication of where the kidnapped men might be held. "The rescue operations are continuing day and night," Al Shahristani said.
Labels: Abd Al Jabbar Al Wakka, Assim Jihad, Hussain al-Shahristani
Thursday, August 09, 2007
Shahristani in Moscow for talks with oil companies
Oil
(The Moscow Times) - Iraq's oil minister arrived in Moscow late Wednesday for talks with Industry and Energy Minister Viktor Khristenko and senior oil executives and said he would offer new terms for Russian companies seeking to work in the war-torn country. Officials from a consortium of three Russian companies -- LUKoil, Zarubezhneft and Mashinoimport -- are expected to meet on Thursday with Iraqi Oil Minister Hussain al-Shahristani in a bid to regain access to the country's oil fields.
In particular, the companies will be hoping to revive a $4 billion deal to develop the 600,000 barrel-per-day West Qurna field, which was scrapped by dictator Saddam Hussein shortly before the U.S.-led invasion in 2003. "Iraq will cooperate with those companies that will propose the best conditions for Iraq, regardless of what countries these companies come from," Shahristani said on his arrival in Moscow, RIA-Novosti reported. Shahristani said no country would get preferential treatment in the competition for Iraqi oil assets. "LUKoil will be competing with other firms on equal terms in accordance with the new oil laws." If LUKoil proposes projects that are competitive enough, it will get the contracts, Shahristani said. LUKoil will likely be hoping to make use of its 20 percent U.S. shareholder, ConocoPhillips, to ease its way back into the country. LUKoil has offered Conoco a 17.5 percent stake in the West Qurna project.
In May, the Iraqi government said it was not prepared to accept a Russian offer to forgive $10 billion in Hussein-era debt in exchange for giving Russian companies access to another major oil field, in Rumaila, Reuters reported. The visit comes as the Iraqi government readies a new law governing foreign investment in the country's oil industry, which has struggled to recover from underinvestment under Hussein and disruption by terrorist attacks under the U.S.-led occupation.
Semakov said LUKoil would create some 2,000 jobs for Iraqis in one field at West Qurna alone. The company has invested "tens of millions of dollars" in the project but would plow in much more in the future, he said.As the invasion of Iraq began, the Russian firms had to abandon their projects and evacuate staff.
Labels: ConocoPhillips, Hussain al-Shahristani, LUKoil, Mashinoimport, Rumaila field, Russia, Viktor Khristenko, West Qurna, Zarubezhneft
Wednesday, August 08, 2007
Electricity output meets only half of domestic needs
Electricity
(Azzaman) - The Ministry of Electricity has finally acknowledged its inability to meet the country’s needs, blaming the current chronic shortages on lack of fuel. Informed sources at the ministry said current output was less than half what the country needs amid soaring temperatures brushing 50 degrees centigrade. The sources said electrical generation capacity is even worse than in the months before the 2003 U.S.-led invasion of Iraq.
The ministry blames the present prolonged outages, which may continue non-stop in certain areas for several consecutive days, on fuel shortages. Rows are reported to have broken out at cabinet meetings between Oil Minister Hussain Shahristani and Electricity Minister Kareem Hassan over fuel supplies. Hassan is said to have accused Shahristani of failing to honor commitments to supply power stations with their fuel needs, saying that much of the reduced capacity is due to stoppages caused by lack of fuel.
Deputy Prime Minister Burham Saleh, who heads the government’s economic commission, has said Shahristani has consistently showed “non-commitment to make available the fuel quantities the Ministry of Electricity needs.” Besides power problems, the country faces severe fuel shortages with refineries running at much below capacity. Iraq currently spends hundreds of millions of dollars on fuel imports from neighboring countries.
Aziz Shammari of the Electricity Ministry said the country had never witnessed “this kind of power crisis” since the 1990s when punitive U.N. trade sanctions were still in placed. “Electricity generation can hardly meet half of the country’s needs. Power output has never been as worse as it is today since 2003,” Shammari said.
The ministry blames the present prolonged outages, which may continue non-stop in certain areas for several consecutive days, on fuel shortages. Rows are reported to have broken out at cabinet meetings between Oil Minister Hussain Shahristani and Electricity Minister Kareem Hassan over fuel supplies. Hassan is said to have accused Shahristani of failing to honor commitments to supply power stations with their fuel needs, saying that much of the reduced capacity is due to stoppages caused by lack of fuel.
Deputy Prime Minister Burham Saleh, who heads the government’s economic commission, has said Shahristani has consistently showed “non-commitment to make available the fuel quantities the Ministry of Electricity needs.” Besides power problems, the country faces severe fuel shortages with refineries running at much below capacity. Iraq currently spends hundreds of millions of dollars on fuel imports from neighboring countries.
Aziz Shammari of the Electricity Ministry said the country had never witnessed “this kind of power crisis” since the 1990s when punitive U.N. trade sanctions were still in placed. “Electricity generation can hardly meet half of the country’s needs. Power output has never been as worse as it is today since 2003,” Shammari said.
Labels: Dr. Burham Saleh, fuel shortages, Hussain al-Shahristani, Kareem Hassan, Ministry of Electricity
Tuesday, August 07, 2007
Al-Maliki in Turkey - insists Iraq isn't supporting PKK
Regional
(AP) - Kurdish guerrillas killed a Turkish lieutenant in the southeast on Tuesday, as the Iraqi prime minister arrived for a visit likely to be dominated by Turkish warnings to either crack down on rebel bases in northern Iraq or face a possible incursion. Iraqi Prime Minister Nouri al-Maliki insisted that his government was not supporting the separatist Kurdistan Workers Party, or PKK.
"Our visit is an effort to develop bilateral relations and cooperation with Turkey, especially regarding the security file, which is the most important one," he told The Associated Press in an interview on his plane before landing in Ankara. "The PKK is an illegal terrorist organization, and the Turks are accusing them of terrorism. We don't allow for any terrorist organization on our soil," he said. "We want good relations with our neighbor, Turkey, and we should not interfere in each other's internal affairs."
Al-Maliki was greeted at the airport in Ankara by Turkey's Trade Minister Kursad Tuzmen. The Iraqi delegation included Oil Minister Hussain al-Shahristani, Foreign Minister Hoshyar Zebari and some Iraqi legislators. Turkish Prime Minister Recep Tayyip Erdogan was expected to warn al-Maliki against allowing the PKK rebels to shelter in Iraq. Turkey has threatened to stage a cross-border offensive to eradicate the Kurdish rebel bases if Iraq or the United States do not act against the rebels.
Al-Maliki will likely seek to dissuade Turkey from launching an incursion. Turkey's patience with the decades-old rebel conflict has been running thin amid escalated fighting that has left around 80 Turkish soldiers dead so far this year. On Tuesday, Turkish generals were gathering for the funeral of a noncommissioned officer, also killed by rebels.
"Our visit is an effort to develop bilateral relations and cooperation with Turkey, especially regarding the security file, which is the most important one," he told The Associated Press in an interview on his plane before landing in Ankara. "The PKK is an illegal terrorist organization, and the Turks are accusing them of terrorism. We don't allow for any terrorist organization on our soil," he said. "We want good relations with our neighbor, Turkey, and we should not interfere in each other's internal affairs."
Al-Maliki was greeted at the airport in Ankara by Turkey's Trade Minister Kursad Tuzmen. The Iraqi delegation included Oil Minister Hussain al-Shahristani, Foreign Minister Hoshyar Zebari and some Iraqi legislators. Turkish Prime Minister Recep Tayyip Erdogan was expected to warn al-Maliki against allowing the PKK rebels to shelter in Iraq. Turkey has threatened to stage a cross-border offensive to eradicate the Kurdish rebel bases if Iraq or the United States do not act against the rebels.
Al-Maliki will likely seek to dissuade Turkey from launching an incursion. Turkey's patience with the decades-old rebel conflict has been running thin amid escalated fighting that has left around 80 Turkish soldiers dead so far this year. On Tuesday, Turkish generals were gathering for the funeral of a noncommissioned officer, also killed by rebels.
Al-Maliki planned to visit Iran on Wednesday.
Labels: Hoshyar Zibari, Hussain al-Shahristani, Kursad Tuzmen, Nouri Al-Maliki, PKK, Recep Tayyip Erdogan, Turkey
Friday, July 27, 2007
Oil minister says oil unions not legit
Oil, Government
(UPI) - Iraq's oil minister said Iraq's oil unions are not legitimate and have no more standing in the debate over the oil law than an ordinary citizen. "There are no legal unions in Iraq," Hussein al-Shahristani said Wednesday in response to a question about various factions' positions on the controversial oil law. "Those people who call themselves representatives of the oil workers have not been elected to the position."
Shahristani spoke to UPI by phone from Baghdad.
The lone remaining law from the Saddam Hussein regime kept by U.S. occupying powers and the successive Iraqi government is the one that bans worker organizing in the public sector. Despite that, workers have come together and leveraged their power. Since 2003 they've blocked numerous attempts to privatize management of both oil and other facilities and stopped work over disputes -- most recently early last month over the oil law and other unmet demands.
Earlier this month workers in the southern, oil-rich town of Basra marched in protest against the oil law and demanded Shahristani's resignation. The law would govern exploration and development of Iraq's 115 billion barrels of proven reserves and unknown reserves to be found in under-explored areas. But the law is stuck over central government vs. regional/local control over certain oil fields. And the unions, along with other political elements, have led the charge that the law allows for contracts they see as too friendly to foreign oil companies.
Shahristani spoke to UPI by phone from Baghdad.
The lone remaining law from the Saddam Hussein regime kept by U.S. occupying powers and the successive Iraqi government is the one that bans worker organizing in the public sector. Despite that, workers have come together and leveraged their power. Since 2003 they've blocked numerous attempts to privatize management of both oil and other facilities and stopped work over disputes -- most recently early last month over the oil law and other unmet demands.
Earlier this month workers in the southern, oil-rich town of Basra marched in protest against the oil law and demanded Shahristani's resignation. The law would govern exploration and development of Iraq's 115 billion barrels of proven reserves and unknown reserves to be found in under-explored areas. But the law is stuck over central government vs. regional/local control over certain oil fields. And the unions, along with other political elements, have led the charge that the law allows for contracts they see as too friendly to foreign oil companies.
Labels: Hussain al-Shahristani, Iraqi oil unions
Monday, June 25, 2007
Oil minister to honor oil contract signed with China during Saddam-era
Oil
(Al Alam News) - Iraq has revived a contract signed by the executed dictator Saddam Hussein's government allowing a Chinese oil company to develop an Iraqi oil field. Oil Minister Hussein al-Shahristani also said Baghdad welcomed Chinese oil company bids for any other contract in the country through a "fair and transparent bidding process" to be laid out in the new oil law under discussion in Iraq's parliament.
China National Petroleum Corporation, the country's largest oil company and the parent of listed group Petrochina, signed a deal with Iraq in 1997 to develop the al-Ahdab oil field. The field is one of the first to be offered to foreign investors since the 2003 US-led invasion. Iraq has been reluctant to revive Saddam-era contracts, but seems to have turned to China as security problems and uncertainties over Iraqi investment law have deterred other investors.
The field had an estimated pre-war capacity of 90,000 barrels a day and the 1997 contract was valued at about $1.2bn. "The contract with the previous administration is still valid--it was signed and we will honor it," al-Shahristani said. He said there were still some technical details to work out but that the two sides would begin discussing revised commercial terms and price details "within one month". It was too early to put a dollar value on the revised contract. US diplomats in Beijing said they were not aware that the deal had been revived.
The breakthrough on the contract was made during a weeklong visit to China by Jalal Talabani, Iraqi president, last month.
China National Petroleum Corporation, the country's largest oil company and the parent of listed group Petrochina, signed a deal with Iraq in 1997 to develop the al-Ahdab oil field. The field is one of the first to be offered to foreign investors since the 2003 US-led invasion. Iraq has been reluctant to revive Saddam-era contracts, but seems to have turned to China as security problems and uncertainties over Iraqi investment law have deterred other investors.
The field had an estimated pre-war capacity of 90,000 barrels a day and the 1997 contract was valued at about $1.2bn. "The contract with the previous administration is still valid--it was signed and we will honor it," al-Shahristani said. He said there were still some technical details to work out but that the two sides would begin discussing revised commercial terms and price details "within one month". It was too early to put a dollar value on the revised contract. US diplomats in Beijing said they were not aware that the deal had been revived.
The breakthrough on the contract was made during a weeklong visit to China by Jalal Talabani, Iraqi president, last month.
Labels: al-Ahdab oil field, China National Petroleum Corporation, Hussain al-Shahristani, Petrochina
Thursday, June 07, 2007
Conference date set for new hydrocarbon law
Conference
On behalf of the Iraqi Government and the Iraqi Ministry of Oil, CWC Associates Limited is delighted to announce the key strategic event: Iraq Petroleum 2007, International Investment in the Iraqi Oil Industry under the New Hydrocarbon Law, 8-10 September, Hyatt Regency Hotel, Dubai. H.E. Dr. Hussain Al Shahristani, Minister of Oil will be leading a delegation from the Ministry. The conference will be the first major international oil conference after the endorsement of the new hydrocarbon law.
The conference will provide a unique opportunity for the international investment community to raise questions on the hydrocarbon law and the new Iraqi Oil policy. Structured to maximise dialogue between Iraqi decision makers and their international counterparts, this conference will explore the risks and the problems as well as the opportunities facing the Iraqi oil industry.
The conference will provide a unique opportunity for the international investment community to raise questions on the hydrocarbon law and the new Iraqi Oil policy. Structured to maximise dialogue between Iraqi decision makers and their international counterparts, this conference will explore the risks and the problems as well as the opportunities facing the Iraqi oil industry.
Labels: conference, Dubai, Hussain al-Shahristani, international investment, Iraqi oil industry, new hydrocarbon law
Sunday, May 27, 2007
Iraq accepts Iranian offer to build pipeline to Basra
Oil, Iran
(Azzaman) - Iraq has accepted an Iranian offer to build a pipeline connecting its terminals and refineries to the prolific Iraqi oil fields in Basra. Assem Jihad, Oil Ministry’s Information Officer said, the agreement was reached during a meeting between Oil Minister Hussain Shahristani and the Iranian ambassador in Baghdad.
Initially, the pipeline will carry 200,000 barrels of Iraqi crude to Iran. The countries will soon form a joint committee on how to implement the project, Jihad said. However, Jihad declined comment on financing and duration of execution but said Shahristani has invited Iranian firms to invest in Iraq and present their offers to build new refineries in the country.
The government has said it would extend Iranian firms preferential treatment because many of them are still operating in southern Iraq despite the flight of other foreign companies. Jihad also said Shahristani has recently met with an EU energy delegation to see whether Iraq can contribute to meet the union’s insatiable demand for gas and oil. He said the EU delegation expressed a desire to import Iraqi gas and particularly from the Kash field in the northern Province of Nineveh.
Initially, the pipeline will carry 200,000 barrels of Iraqi crude to Iran. The countries will soon form a joint committee on how to implement the project, Jihad said. However, Jihad declined comment on financing and duration of execution but said Shahristani has invited Iranian firms to invest in Iraq and present their offers to build new refineries in the country.
The government has said it would extend Iranian firms preferential treatment because many of them are still operating in southern Iraq despite the flight of other foreign companies. Jihad also said Shahristani has recently met with an EU energy delegation to see whether Iraq can contribute to meet the union’s insatiable demand for gas and oil. He said the EU delegation expressed a desire to import Iraqi gas and particularly from the Kash field in the northern Province of Nineveh.
Labels: Assem Jihad, Basra, Hussain al-Shahristani, Iran, oil pipeline
Thursday, May 24, 2007
E.U. delegation interested in importing Iraqi natural gas
E.U.
(Voices of Iraq) - A visiting European Union delegation said that EU countries are interested in importing Iraqi natural gas from the Ekas field in southern Iraq, the spokesman for the Iraqi Oil Ministry said on Wednesday. "EU representatives held talks this week with oil ministry officials, headed by oil minister Hussein al-Shahrestani, and expressed EU countries’ interest in importing Iraqi natural gas from the Ekas field, a huge field that extends from Ninewa province to the southern borders of Saudi Arabia," Essam Jihad told the independent news agency voices of Iraq (VOI).
"Ekas is one of the fields included in the ministry's development plan. It has a production capacity of 100,000 barrels per day, in addition to possible large amounts of gas in the western region that may turn Iraq into one of the largest natural gas producers in the Middle East region," he added.
"The delegation expressed desire to transport gas through the joint Arab pipeline that passes through a number of Arab countries: Egypt, Lebanon, Jordan, Syria and through Turkey towards the EU," he also said, noting that the delegation expressed interest in importing the whole production. "Large steps have been taken towards concluding the agreement and the EU delegation is interested in participating to develop Iraq’s oil fields," the spokesman affirmed.
"Ekas is one of the fields included in the ministry's development plan. It has a production capacity of 100,000 barrels per day, in addition to possible large amounts of gas in the western region that may turn Iraq into one of the largest natural gas producers in the Middle East region," he added.
"The delegation expressed desire to transport gas through the joint Arab pipeline that passes through a number of Arab countries: Egypt, Lebanon, Jordan, Syria and through Turkey towards the EU," he also said, noting that the delegation expressed interest in importing the whole production. "Large steps have been taken towards concluding the agreement and the EU delegation is interested in participating to develop Iraq’s oil fields," the spokesman affirmed.
Labels: E.U., Ekas field, Hussain al-Shahristani, Iraqi natural gas
Wednesday, May 23, 2007
Iraq to increase oil exports to Iran through new pipeline
Oil
(UPI) - Iraq agreed to increase oil exports directly to Iran via a new pipeline in the south, though export capacity in the north remains stuck. Iraq oil minister Hussein Al Shahristani and Hasan Kazemi Qomi, the Iranian ambassador to Iraq, struck the deal, according to a top ministry spokesman. "The two agreed to lay the oil pipeline from southern Iraq to Abadan region in Iran in order to export more than 200,000 barrels per day [bpd] of Iraqi crude oil to Iran according to crude oil international prices," Issam Jihad told reporters.
The Voices of Iraq news agency reports that the oil will be used in Iran's refineries. While Iraq has 115 billion barrels of proven reserves, the third-most in the world, production is struggling at 2 million bpd and exports at 1.6 million bpd. This is caused not by a lack of export capacity, at least in the south, but by old, misused, and often attacked infrastructure. Tens of billions of dollars are needed to fix the system, which has suffered under the current occupation and its fighting, and Saddam Hussein worked the sector too hard without proper upkeep. Prewar production was around 2.6 million bpd and experts say that the sector could handle much more.
All of Iraq's exports come from the south, mostly from the Persian Gulf port of Basra. A pipeline in the north, from Kirkuk to Ceyhan, Turkey, has been attacked so often it is no longer considered viable. The investment would come from Iraqi coffers or foreign firms. Oil revenue funds more than 93 percent of the federal budget, though much of it goes to security. International oil companies are waiting for the parliament to pass an oil law before it knows what access it has to the oil.
Labels: Abadan region, Hasan Kazemi Qomi, Hussain al-Shahristani, Iran, oil exports
Friday, May 18, 2007
Iraq, Iran agree to laying oil pipeline
Oil, Iran
(Voices of Iraq) - The Iraqi government has agreed with Iran to start laying oil pipeline between the two countries to export Iraqi oil to the neighboring country, the official spokesman for Iraq's Oil Ministry said on Thursday. "The agreement came during the meeting between Iraqi oil minister Hussein al-Shahrestani and Iranian Ambassador to Iraq Hasan Kazemi Qomi at the minister’s office," Essam Jihad told the independent news agency Voices of Iraq (VOI).
"The two agreed to lay the oil pipeline from southern Iraq to Abadan region in Iran in order to export more than 200,000 barrels per day of Iraqi crude oil to Iran according to crude oil international prices," he also said. He noted that the new pipeline will provide a new way to boost the country's export capacity to Iranian refineries in Abadan. "They also agreed to arrange a mutual visit for technicians from both countries to prepare the agreement's contracts," the official added.
"The two agreed to lay the oil pipeline from southern Iraq to Abadan region in Iran in order to export more than 200,000 barrels per day of Iraqi crude oil to Iran according to crude oil international prices," he also said. He noted that the new pipeline will provide a new way to boost the country's export capacity to Iranian refineries in Abadan. "They also agreed to arrange a mutual visit for technicians from both countries to prepare the agreement's contracts," the official added.
Labels: Abadan region, Hasan Kazemi Qomi, Hussain al-Shahristani, Iran, Iraqi government, oil pipeline
Tuesday, May 15, 2007
Iraq to invite India to establish refineries
Oil
(NDTV Profit) - Iraq will press Indian firms to set up refineries there during a four-day visit to India by Oil Minister Hussain al-Shahristani later this month, an Iraqi official said on Monday. "We will invite India to establish refineries in Iraq ... the capacity of our refineries is very limited," said Muayad Hussain, Iraq's charge d'affaires in India. Shahristani is due in India from 24-27 May.
Iraq has a refining capacity of 603,000 barrels per day. It produces 477,000 bpd of refined products and consumption stands at 514,000 bpd, according to the OPEC Web site. During a visit to the Saudi capital Riyadh earlier this month, Oil Minister Murli Deora met Shahristani. The participation of Indian state explorer Oil and Natural Gas Corp. and other firms in Iraq's oil sector was raised.T he Iraqi minister invited Indian Oil Corp. and Engineers India Ltd. to consider entering the downstream sector.
Hussain said in New Delhi that the exploration of the Tuba oil field in southern Iraq could also feature in talks between the two countries. ONGC, Reliance Industries Ltd. and Algeria's Sonatrach tried in 2000 to secure Tuba. Iraq is expected to enact an oil law by May-end that would allow its various regions to negotiate oilfield contracts with foreign investors.
Baghdad desperately needs foreign investment to revive its shattered economy, which relies heavily on oil export revenues. The country straddles the world's third largest oil reserves. Decades of war, sanctions, under-investment and now widespread violence and sabotage have left it critically short of fuel. It has to import nearly half of all its gasoline. Iraq has eight refineries, none of which were damaged during the U.S.-led invasion in 2003. Oil officials say that Iraq's refineries are operating at only 50-75 percent of capacity, forcing Baghdad to import most of its fuel.
Labels: Engineers India Ltd., Hussain al-Shahristani, India, Oil and Natural Gas Corp., oil refineries, Tuba oil field
Friday, May 11, 2007
Kurdish officials to meet central government over draft oil law
Oil
(Reuters) - Senior Iraqi Kurdish officials will travel to Baghdad next week hoping to end an impasse with the central government over a draft oil law to share revenues from the world's third-largest oil reserves. Oil Minister Hussain al-Shahristani, speaking ahead of the meeting in Egypt in which industrialised powers pressed reforms in Iraq in exchange for aid, told reporters in Saudi Arabia last week that Kurds were "very happy" with the draft law and that all the groups had agreed to pass it by the end of May.
But an oil industry source told Reuters on Thursday the bill was in a state body charged with drafting legislation, and that Kurds still had misgivings over annexes they say would wrest oilfields from regions and place them under a new state-oil firm. Iraq's Kurdish Prime Minister Nejruvan Barzani said he will lead a high-level delegation of Kurdish officials to discuss the annexes with the central government next week.
"Next week, new negotiations will start over the appendixes to the oil law and the revenue distribution law. I will participate in a large part of these negotiations," Barzani told reporters in the northern city of Arbil late on Wednesday. "The Kurds had a big role in writing the draft of the suggested oil law. I am optimistic in resolving the disputes."
Barzani has insisted that Kurds want to include a separate law on oil revenue management that would set up a Kurdish fund. The central government has said it wants revenues put in a central account and distributed according to Iraq's population. Iraq's Deputy Prime minister Barham Salih, the chief architect of the draft oil law, told Reuters in an interview earlier this month he was confident a draft oil law would be approved in parliament after officials from the central government and Kurdistan meet to iron out differences.
But an oil industry source told Reuters on Thursday the bill was in a state body charged with drafting legislation, and that Kurds still had misgivings over annexes they say would wrest oilfields from regions and place them under a new state-oil firm. Iraq's Kurdish Prime Minister Nejruvan Barzani said he will lead a high-level delegation of Kurdish officials to discuss the annexes with the central government next week.
"Next week, new negotiations will start over the appendixes to the oil law and the revenue distribution law. I will participate in a large part of these negotiations," Barzani told reporters in the northern city of Arbil late on Wednesday. "The Kurds had a big role in writing the draft of the suggested oil law. I am optimistic in resolving the disputes."
Barzani has insisted that Kurds want to include a separate law on oil revenue management that would set up a Kurdish fund. The central government has said it wants revenues put in a central account and distributed according to Iraq's population. Iraq's Deputy Prime minister Barham Salih, the chief architect of the draft oil law, told Reuters in an interview earlier this month he was confident a draft oil law would be approved in parliament after officials from the central government and Kurdistan meet to iron out differences.
Labels: Barham Salih, draft oil law, Hussain al-Shahristani, KRG, Nejruvan Barzani
Saturday, May 05, 2007
Iraq invites Indian company to set up oil refineries
Oil
(Business Standard) - Iraq has invited Indian Oil Corporation (IOC), the country’s largest oil refiner, to set up refineries in the war-torn country, and also participate in other downstream projects, a government statement said.
Petroleum Minister Murli Deora, who is currently on a visit to Riyadh in Saudi Arabia to participate in the Second Ministerial Energy Round Table of Asian Oil Producing and Major Asian Oil Importing Countries, met Iraqi Oil Minister Hussain Al-Shahristani and discussed ONGC Videsh’s (OVL) participation in Iraq’s upstream sector. OVL and Reliance Industries have evinced interest in entering Iraq’s oil exploration sector.
OVL, Reliance and Algeria’s Sonatrach were in talks with the Saddam Hussein regime before the US took over Iraq in 2000. The UN sanctions that came in after 2000 prevented further talks from talking place. Iraq has proven oil reserves of 112 billion barrels which makes it the world’s second largest, behind Saudi Arabia.
Petroleum Minister Murli Deora, who is currently on a visit to Riyadh in Saudi Arabia to participate in the Second Ministerial Energy Round Table of Asian Oil Producing and Major Asian Oil Importing Countries, met Iraqi Oil Minister Hussain Al-Shahristani and discussed ONGC Videsh’s (OVL) participation in Iraq’s upstream sector. OVL and Reliance Industries have evinced interest in entering Iraq’s oil exploration sector.
OVL, Reliance and Algeria’s Sonatrach were in talks with the Saddam Hussein regime before the US took over Iraq in 2000. The UN sanctions that came in after 2000 prevented further talks from talking place. Iraq has proven oil reserves of 112 billion barrels which makes it the world’s second largest, behind Saudi Arabia.
Labels: Hussain al-Shahristani, Indian Oil Corporation, Iraq, Murli Deora, oil refineries, OVL
